, The year is running out fast.

in a few weeks, half of the year would have passed.

That makes now a great time to review the foundation of your business before the year runs out on you.

In this email, I will share with you 3 compelling reasons you should float your business as a company Ltd by shares and not as a business name or an enterprise.

The first compelling reason to go for a Company as against an enterprise or a Business name is that a business name, an enterprise, or a venture can not attract quality investors.

There is no equity, no board position, no shares absolutely nothing to give in return for the investments thereby reducing the possibility of having an investor.

This is not good for a business that wants to grow and go far.

Another important thing to consider is that a Company Ltd by shares protects the shareholders from being personally liable for the debts of the company.

Their liability is only limited to the value of their investment in the company, unlike a business name where the owner’s liability is personal and unlimited.

An owner of a business name is solely responsible for the entire debts of the business.

His personal property is not protected, he can be sued and his properties can be sold off to offset the debts of the company.

Moreso, a Ltd liability company has a separate legal personality from the day it is registered.

It becomes an artificial person with all the powers of a natural person.

A company can enter into contracts and can sue and be sued in its own name e.g ABC LTD but a business name has no such power.

A business name can only sue and be sued in the Proprietor's name.

If you already registered a business name you can still upgrade your business to a ltd liability company.

If you are just about registering your business, just go right ahead and float it as a company.

Whatever is worth doing is worth doing well init?

To Your #LegalSense

-BarinaadaLegal

P.S. If you have any questions, reply to this email and we will take it up from there